You are here: Home > articles > Forex > Technical Analysis – USDJPY consolidates, confirmed by flat SMAs and indicators
Technical Analysis – USDJPY consolidates, confirmed by flat SMAs and indicators
July 15, 2020 7:26 amVideo
Latest News
- Technical Analysis of Intraday Price Movement of Silver Commodity Asset, Tuesday May 28, 2024. May 28, 2024
- Technical Analysis of Daily Price Movement of USD/IDR Exotic Currency Pairs, Tuesday May 28, 2024. May 28, 2024
- Forecast for GBP/USD on May 28, 2024 May 28, 2024
- Forecast for AUD/USD on May 28, 2024 May 28, 2024
- The bullish bias is gaining momentum. Overview of GBP/USD May 28, 2024
- CFTC report: investors continue to USD sell-off despite high yields May 28, 2024
- Investors bet on the euro’s strength. Overview of EUR/USD May 28, 2024
- Video market update for May 27, 2024 May 27, 2024
- Analysis of GBP/USD pair on May 27, 2024 May 27, 2024
- Euro area inflation unlikely to change ECB’s outlook – Preview May 27, 2024
- EUR/USD. Analysis of the upcoming inflation report in the European Union. What to expect? May 27, 2024
- USD/JPY: Simple trading tips for novice traders on May 27th (US session) May 27, 2024
- GBP/USD: Simple trading tips for novice traders on May 27th (US session) May 27, 2024
- EUR/USD: Simple trading tips for novice traders on May 27th (US session) May 27, 2024
- GBP/USD: trading plan for the US session on May 27th (analysis of morning deals). The pound reached 1.2756 May 27, 2024
- Technical Analysis – Will gold resume its prevailing uptrend? May 27, 2024
- Technical Analysis – USDCAD pulls back but diagonal line still stands May 27, 2024
- Technical Analysis – USDJPY remains stuck in a tight range May 27, 2024
- EUR/USD: trading plan for the US session on May 27th (analysis of morning deals). The euro is trying to continue its growth May 27, 2024
- Forecast of EUR/USD pair on May 27, 2024 May 27, 2024
USDJPY posted a double bottom around the 106.00 psychological mark, retaining the neutral outlook that has been holding since March 26.
The sideways behavior is endorsed by the short-term momentum indicators. The RSI is hovering around its neutral threshold of 50 with weak movement, while the MACD is flattening near the zero level. Meanwhile, the simple moving averages (SMAs) keep moving horizontally slightly above the current market price, backing the neutral outlook as well.
In case the bulls successfully overcome the 20- and 40-day SMAs, immediate resistance could occur near the 38.2% Fibonacci retracement level of the up leg from 101.15 to 111.70 at 107.66. Higher, the 108.15 barrier could be the next target, while marginally above that line, the 200-day SMA could act as a crucial level for investors. Breaking that level too, the focus will turn to the 23.6% Fibonacci of 109.20 and the upper boundary of the range near the ten-week peak of 109.83. Beyond the latter, optimism for more bullish actions could strengthen, bringing the 111.70 hurdle next into view.
On the flip side, another test of the 50.0% Fibonacci of 106.43 and the 106.00 mark could be expected, however, a decline below these levels would resume a bearish structure, pushing support towards the 61.8% Fibonacci of 105.19. Below that, the next key level to watch could be the 41-month trough of 101.15.
Summarizing, USDJPY has been consolidating over the last four months below the 109.83 mark. A rise above the 112.20 – 112.40 area could shift the outlook from neutral to bullish in the medium term.
Related Posts: